Mining, Energy Costs Push Producer Inflation to 1.9%
By Praisebell Rosemond Larbi
Ghana’s year-on-year producer price inflation rose to 1.9 per cent in December 2025, up from 1.3 per cent in November, driven largely by higher costs in the mining, quarrying and electricity sectors, according to the latest Producer Price Index (PPI) released by the Ghana Statistical Service (GSS).
The data show that the PPI stood at 266.0 in December 2025, compared with 261.1 in the same period a year earlier, indicating a modest rise in the average ex-factory prices received by domestic producers over the 12-month period. The increase suggests a gradual build-up in cost pressures within key production sectors, even as short-term price movements point to some easing.
Despite the rise in annual inflation, month-on-month producer prices declined by 0.8 per cent in December, reflecting a moderation in prices between November and December 2025. The GSS said this monthly deflation indicates that, in the short term, producers experienced some relief from cost pressures, particularly in selected sectors.
The mining and quarrying sector, which carries the largest weight in the PPI basket at 43.7 per cent, was the single biggest driver of the annual increase. Producer inflation in the sector rose to 3.3 per cent in December, up from 2.3 per cent in November. According to the GSS, this increase alone contributed about one percentage point to overall producer inflation, underscoring the sector’s outsized influence on production costs across the economy.
Electricity and gas also recorded a notable rise in prices, with year-on-year producer inflation increasing from 4.0 per cent in November to 6.1 per cent in December. The Service attributed this development to higher operational and energy-related costs, which continue to affect producers across multiple industries.
In contrast, the manufacturing sector helped to moderate overall producer inflation. Manufacturing, which accounts for about 35 per cent of the PPI weight, recorded a year-on-year inflation rate of 0.1 per cent in December, down from 0.5 per cent in November. The negative contribution from manufacturing prices helped offset stronger increases in mining and energy-related costs.
The services sector showed mixed price dynamics. Transport and storage remained in deflationary territory, although the rate improved significantly from –10.2 per cent in November to –3.7 per cent in December. Accommodation and food services also recorded a year-on-year deflation of 3.2 per cent, pointing to subdued pricing conditions in parts of the services economy.
Presenting the data, Government Statistician Dr Alhassan Iddrisu explained that the PPI measures prices received by producers at the factory gate and excludes taxes, subsidies and intermediary costs, making it a key early indicator of future consumer price movements.
The GSS advised businesses to focus on improving productivity, efficiency and cost management to remain competitive amid uneven sectoral price trends. Government, on the other hand, was encouraged to continue addressing structural production costs through investments in energy reliability, transport networks and logistics infrastructure, to help contain producer prices and support broader price stability in the economy.
